question 4 please!

for question 1 the answer is 346 kegs

wa Chade Yuler Ronald T Prosper Landes Le 9. 9 2. Assume all conditions in question 1 hold, except supplier now offers a quantity discount in the form absorbing all or part of Low's order procesing all the order processing costs; for orders between 2 orders of 750 or more kegs of nails, the supplier 749 kegs, the supplier will absorb half. What is an EOQ? (It might be useful to lay out all costs in the 3. Temporarily ignore your work on question 2. Awametoa Lowl warehouse offers to rent Low space on the basis the di number of kegs Low will have in stock, aber than on the maximum number of kegs Low wood charge per keg remains the same. Does this change the answer to question 1? If so, what is the new answert CASE CASE 8. 1 LOW NAIL COMPANY After making some wie short-term investments at a nice track, Chris Low had some additional cash to in vest in a business. The most promising opportunity at the time was in building supplies, so Low bought a business that specialized in sales of one size of nail. The annual volume of nails wax 2,000 kegs, and they were sold to retail customers in an even flow. Low was uncertain how many nails to order at any time. Initially, only two costs concerned him order processing costs, which were $60 per order without regard to size, and warehousing costs, which were st per year per keg space. This meant that Low had to rent a constant amount of warehouse space for this and later questions.) for the year, and it had to be large enough to accommo- date an entire order when it arrived. Low was not wor nied about maintaining safety stocks, mainly because the ourward flow of goods was so even. Low bought his nails on a delivered basis. plier's new policy outlined in question 2 and the watches new policy in question 3. Then determine Low's new BDO 5. Temporarily, ignore your work on questions 2, 3, and 4 Low luck at the race track is over; he now must borrow money to finance his inventory of nails. Looking at the site ation outlined in question 1, assume that the wholesale con of nails is $40 per keg and that Low must pay interest at the rate of 1.5 percent per month on unsold inventory. What's his new EOQ? 6. Taking into account all the factors listed in questions 1,2,3, and 5, calculate Low's EOQ for kegs of nails. QUESTIONS 1. Using the EOQ methods outlined in the text, how many keys of nails should Low order at one time